Q: In view of Databank’s political affiliation, is it still safe to keep investing with Databank and what measures are in place to ensure that clients are protected should Databank go down?
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A: Databank has a strong corporate governance system that comprises the following:
- Each mutual fund is a separate company with a separate board of directors
- The directors on the board are all independent and are not employed by Databank (except the CEO)
- This Board of Directors checks the Investment decisions that are made by the Fund Manager to ensure that it complies with the Scheme Particulars
- There is also an Investment Committee that helps the Fund Manager to make sound investment decisions
- Customers’ funds are kept in Custodian banks where customers’ funds are kept
- Should DAMSEL - the fund manager’s license be revoked, the Custodian Bank will be instructed to refund clients’ monies.
